The damage adds realism to the nonexistent "fear factor" of the game. If they implement permanent damage, you will see no more super flying hot laps anymore! think taking a 20M credit car to the nurb and taking the risk "to total" the car trough a flying lap. This is for me the main purpose of implementing real damage. To add some "fear factor" to the game. Taking it in to a more challenging level,if they implement the option of "virtualyl dying", loosing all the career progress, the global lap times will be more "real". And this could be implemented having some level selection in the career mode, like "rookie, casual, pro, simulation", in the "simulation" mode for hardcore players.
So, some expert seasonal could adopt this feature to gold the event.